Councillor Mirau asks for report on impact of MSP changes on civic costs

Councillor Blair Mirau is seeking a report from the finance department
on the impact to the City from Employer Health Tax changes

Prince Rupert City Council finally approached the topic of a change to the province's MSP program, one which could result in a significant financial hit for the City of Prince Rupert when it comes to the health care costs for civic employees.

Councillor Blair Mirau raised the topic at the Monday, August 20th session, asking for a report from the City's Financial Officer as to what impact the provincial change will have on the city, noting that a number of other municipalities have delivered a request of the provincial government for an exemption from the additional costs that the change may bring.

The change in policy came earlier this year with the creation of the NDP government budget planning, as Provincial Finance Minister Carole James indicated that British Columbia was set to follow the lead of other provinces in scrapping MSP payments.

Set to replace them with the Employer Health Tax which the Finance Minister described as a fairer system, Ms. James further expanded on the program in July

We first made note of the percolating issue and its potential impact on Prince Rupert at that time, noting how the provincial change could add to the growing list of irritants that City Council has been compiling when it comes to its exchanges with the provincial government.

To provide some further information on the issue, the Union of British Columbia Municipalities issued a report earlier this year, including a data base of economic factors that indicated that Prince Rupert would be in store for a string of increases over the next three years.

Prince Rupert

2018 cost -- $107,000
2019 estimate -- $394,000
2020 estimate -- $293,000

The UBCM background piece offered up a chart that outlined the funding options that are available to municipal and regional governments. Included was a mix of property tax increases and potential service reductions that would be required to meet the EHT requirements.

The UBCM has done some math for communities across
the province, highlighting the impact of a change in how
the province of BC collects employer health payments

With that information release from the UBCM, many communities had launched their own questions of the provincial government over the plan, with a number seeking similar exemptions as those offered to School Districts, Health Authorities, as well as to Colleges and Universities.

As well, many municipalities have questioned if the province's initiative to create fairness should come through the process of property taxation, which is how municipalities raise the resources for their operations.

And while a growing number of municipalities have been quick to action on the issue, Prince Rupert Council however seems to have let the issue slip through the summer, only now raising the topic for discussion.

Should Councillor Mirau and the others receive Ms. Bomben's notes prior to their departure for the UBCM gathering in Whistler from September 10 to 14, they may be able to use her talking points as part of their intercessions with provincial officials at the annual convention.

Mr. Mirau introduces the topic to Council at the fifty three minute mark of the Video Archive for the August 20th session.



For more items of note from the Council session see our Council Timeline or archive page for the August meeting.

Further background on financial issues facing the City of Prince Rupert can be found on our Budget and Taxation archive pages.

A wider overview of Council Discussion themes is available on our Council Discussion archive.

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